Germany's Federal Minister of Labor Hubertus Heil said on Monday that a significant increase of the national minimum wage is necessary to keep up with the rising cost of living. A member of Chancellor Olaf Scholz's ruling Social Democrats (SPD), Heil said that without this increase, Germany risked violating an EU directive.

Heil said in a television interview on German public broadcaster ARD that the move was about "having a reliable minimum wage so that people can make a living from their work."

"Six million people will benefit from this" immediately, he said, adding that by "2026, the minimum wage will be between 14 and 15 euros." 

Germany's current federal minimum wage is €12.41 ($13.70) per hour.

The minumum wage debate within Germany's ruling coalition

Heil's comments came as he prepared to report to the Minimum Wage Commission, which he was obligated to do by November. The move will also bring Germany in line with EU regulations about how high the minimum wage must be in relation to medium income, he said.

Yasmin Fahimi, head of the German Trade Union Confederation, welcomed Heil's statements, saying "Germany needs a poverty-proof miminum wage."

However, the Free Democrats (FDP), a pro-business party that rules in coalition with the center-left SPD and the environmentalist Greens, criticized the announcement. They accused Heil of trying to win political points and said it would "weaken Germany as a business destination" and hurt the competitiveness of small businesses. They further argued that Germany already met the EU requirements.

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es/kb (AFP, Reuters)